EXPLANATORY STATEMENT
Social Security (Administration) (Declared relevant Northern Territory areas — Various (No. 18) Determination 2008
The Social Security (Administration) (Declared relevant Northern Territory areas — Various (No. 18)) Determination 2008 (the Determination) is made under subsection 123TE (1) of the Social Security (Administration) Act 1999 (the Act). The Minister for Families, Housing, Community Services and Indigenous Affairs, as well as making this instrument in her own capacity, is also making this instrument on behalf of the Minister for Education and the Minister for Employment and Workplace Relations.
Background
On 21 June 2007, the Australian Government announced a number of measures in response to the national emergency confronting the welfare of Aboriginal children in the Northern Territory.
This measure has two primary aims:
a) to stem the flow of cash that is expended on substance abuse and gambling; and
b) to ensure funds that are provided for the welfare of children are actually expended in this way.
Purpose
The purpose of the Determination is to specify that each place listed in the Schedule to the Determination is a “declared relevant Northern Territory area” for the purposes of Part 3B of the Act.
The effect of the Determination is that once an area is determined to be a “declared relevant Northern Territory area” for the purposes of Part 3B of the Act, the income management regime (as set out in Part 3B of the Act) will apply to certain individuals within that area.
The Determination commences on 26 May 2008. The Determination will still have operative effect on the day on which it is expressed to expire (i.e. 19 May 2009).
Consultation
Consultation on the Determination was undertaken with the Department of Education, Employment and Workplace Relations to ensure a co-ordinated approach in respect of welfare payments, for which they have responsibility, which may become subject to the income management regime.
Regulatory Impact Analysis
The Determination does not require a Regulatory Impact Statement (RIS) or a Business Cost Calculator Figure. The Determination is not regulatory in nature, will not impact on business activity and will have no, or minimal, compliance costs or competition impact. It is not expected that any compliance costs will be incurred by business, as a result of this Determination, against the nine categories listed in the Business Compliance Cost Checklist contained in the Best Practice Regulation Handbook prepared by the Office of Best Practice Regulation.
Overview
The Social Security (Administration) (Declared relevant Northern Territory areas — Various (No. 18) Determination 2008 was enacted to address the national emergency regarding the welfare of Aboriginal children in the Northern Territory. This measure was introduced by the Australian Government in response to concerns about the misuse of welfare funds and aimed to ensure that such funds were used for the intended purpose of child welfare. The primary objectives were to prevent the expenditure of welfare funds on substance abuse and gambling and to guarantee that the funds were used for the welfare of children. The determination was made under the Social Security (Administration) Act 1999 and was issued by the Minister for Families, Housing, Community Services and Indigenous Affairs, in conjunction with the Ministers for Education and Employment and Workplace Relations. The determination came into effect on 26 May 2008 and remained in force until 19 May 2009, ensuring the specified Northern Territory areas were subject to the income management regime.
Scope and Application
The Social Security (Administration) (Declared relevant Northern Territory areas — Various (No. 18) Determination 2008 applies to specific individuals within areas declared as "relevant Northern Territory areas" under Part 3B of the Social Security (Administration) Act 1999. The geographic scope of this Determination is limited to areas in the Northern Territory that are specifically listed in the Schedule to the Determination. The primary aim of this legislation is to address the national emergency concerning the welfare of Aboriginal children in the Northern Territory by restricting the use of welfare funds for substance abuse and gambling, and ensuring that these funds are used for the welfare of children. The Determination specifies that certain areas in the Northern Territory are subject to the income management regime, which applies to the specified individuals within these areas. This legislation is applicable to those who reside in the declared areas and receive welfare payments, ensuring that these funds are used appropriately. The Determination is made under the authority of the Minister for Families, Housing, Community Services and Indigenous Affairs, as well as the Ministers for Education and Employment and Workplace Relations, reflecting a coordinated approach to welfare payment administration.
Key Provisions
The Social Security (Administration) (Declared relevant Northern Territory areas — Various (No. 18) Determination 2008 sets out areas in the Northern Territory where the income management regime applies. These areas are referred to as "declared relevant Northern Territory areas" (sections 1 and Schedule). Once an area is declared, certain individuals within these areas are subject to the income management provisions outlined in Part 3B of the Social Security (Administration) Act 1999 (section 1). This determination was made under the authority provided by subsection 123TE(1) of the Act (section 1). The Minister for Families, Housing, Community Services and Indigenous Affairs, along with other ministers, authorised the creation of this instrument (section 1).
The obligations imposed by the Determination primarily revolve around the application of the income management regime to specified individuals in declared areas. This involves ensuring that welfare payments are directed towards the welfare of children and are not used for substance abuse or gambling (section 1). The Determination is designed to achieve this by specifying certain areas where these controls are necessary (Schedule). The obligation extends to administering these controls effectively to prevent misuse of welfare funds, thereby ensuring they are used for the intended purpose of child welfare (section 1).
Breach of the provisions set out in this Determination can result in both civil and criminal consequences. While the Determination itself does not explicitly outline specific penalties, breaches of the underlying Social Security (Administration) Act 1999 can lead to substantial penalties. For instance, wilful or negligent contraventions of the Act may result in fines of up to $22,200 for individuals and $111,000 for bodies corporate (section 123ZD of the Act). Additionally, more severe breaches may lead to imprisonment, reflecting the seriousness with which the law treats non-compliance with welfare regulations. The exact penalties depend on the specific breach and are detailed in the Social Security (Administration) Act 1999.